Paycom Software, Inc. (PAYC) · Nov 4, 2026 · Earnings

Paycom earnings beat as 2026 guidance rises again

Beat — Non-GAAP EPS $3.37 vs ~$2.81 consensus; FY revenue midpoint raised to $2.216B

Paycom earnings beat Q3 revenue and EPS expectations, while the company lifted 2026 revenue and EBITDA guidance for a second time.

Paycom is in the middle of an automation-led recovery: its cloud HCM platform is using products such as IWant™ and automated decisioning to reignite growth while converting that growth into much higher operating leverage. The prior quarter had already shown momentum and carried 2026 revenue guidance of $2.197–$2.212 billion and adjusted EBITDA guidance of $1.007–$1.022 billion.

The quarter clearly beat the market’s bar. Revenue reached $543.8 million versus published consensus of roughly $535.3 million, while non-GAAP diluted EPS was $3.37 versus about $2.81 expected. That is not just a revenue beat: recurring and other revenue grew 11.3%, and adjusted EBITDA rose 38% year over year to $268.1 million, showing that Paycom is extracting more profit from modest double-digit growth.

Q3 2026Q3 2025Consensus
Total revenue (Financial Highlights)$543.8M (+10.2%)$493.3M~$535.3M
Non-GAAP diluted EPS (Financial Highlights)$3.37$1.94~$2.81
Adjusted EBITDA (Reconciliation)$268.1M (+38.0%)$194.3M
Adjusted EBITDA margin (Reconciliation)49.3%39.4%

The more important surprise is the second guidance increase. Paycom lifted its 2026 revenue range to $2.213–$2.218 billion from $2.197–$2.212 billion and raised adjusted EBITDA to $1.069–$1.079 billion from $1.007–$1.022 billion. The revenue revision is modest, but the roughly 2.5-point increase in the midpoint EBITDA margin to 48.5% says the company is seeing better operating leverage than it previously assumed. 〔0〕

The caveat is capital allocation, not operating execution. Paycom generated $536.5 million of free cash flow through nine months and repurchased $1.391 billion of stock, but it also ended the quarter with $750 million of long-term debt and only $193.9 million of cash. The balance-sheet change reflects an aggressive buyback program rather than a deterioration in the operating model, but it makes the stronger earnings story more dependent on continued cash generation.

Bottom line: This is a genuine operating beat with another upward reset to the full-year outlook, strengthening Paycom’s automation-and-margin recovery story. The event matters because profitability is improving faster than revenue, although the heavy buyback program has increased balance-sheet leverage.

What to watch next

Q4 results and 2027 outlook, early February

Original filing on SEC EDGAR

More Paycom Software, Inc. news

Paycom earnings beat as 2026 guidance rises again | PAYC Stock News
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